The National Highway Authority of India (NHAI) is currently not experiencing any financial crises, as reported to Parliament on Thursday. According to Union Road Transport and Highways Minister Nitin Gadkari, the NHAI has developed a plan to manage its debt through enhanced inflows of toll revenue and asset monetisation.
Debt Management and Loan Prepayment
In a written response to the Lok Sabha, Gadkari stated that NHAI’s financial stability is demonstrated by its ability to prepay a significant portion of its bank loans. Specifically, NHAI has utilized InvIT (Infrastructure Investment Trust) monetisation proceeds to clear loans amounting to Rs 15,700 crore. This includes Rs 6,350 crore repaid in the last financial year and Rs 9,350 crore in July 2024. As of now, NHAI’s total debt stands at Rs 3.35 lakh crore.
Government Mandates and Debt Reduction
Gadkari noted that the government has not required NHAI to raise additional funds since the fiscal year 2023-24. Consequently, debt reduction efforts have commenced. The minister highlighted that the funds raised through InvIT are allocated solely for debt repayment.
Role of InvIT
InvIT, akin to mutual funds, is designed to aggregate investments from various sources and invest in assets that generate steady cash flows over time. The proceeds from InvIT are thus earmarked exclusively for servicing the existing debt.
Implementation of Bharatmala Pariyojana
In 2017, the government expanded NHAI’s mandate to include the implementation of the Bharatmala Pariyojana. To facilitate this, NHAI secured borrowings in line with the Internal and Extra Budgetary Resources (IEBR) approved in the Union Budget.
Bank loans of several hundred crores tken from PSU banks by road contractors are pending as NPAs. The NHAI is requested to isolate such tyrant and truant bank borrowers who spoil the goodwill of NHAI as well as increase the burden on PSU banks who are further hindered by judicial activism and clandestine support to such big borrowers.
Ok no issue. The concern is the repayment of loans of PSU bankets with meagre resources to fight big bully borrowers who are able to dodge and manipulate pending for years.